Minsk, Belarus, June 21, 2017—IFC,
a member of the World Bank Group, signed today a swap agreement to help
Belarusky Narodny Bank (BNB-Bank) hedge its currency risk, supporting better
access to finance for small and medium enterprises (SMEs).
IFC and BNB-Bank plan to execute a currency
swap transaction with a notional amount of up to 15 million euro and up
to two years’ maturity. The long-maturity currency swap allows the bank
to enhance its creditworthiness and improve profitability by hedging currency
exposure through the international derivatives markets. This is the first
swap agreement structured by IFC in Belarus.
“Today’s agreement is a part of an excellent
partnership we have developed with IFC,” said Constantine Tsereteli, BNB-Bank's
CEO. “The successful completion of the swap deal will help us manage foreign
currency risks and our long-term liabilities more actively, improving our
profitability. Our strategic goal remains unchanged; we want to continue
to expand support to SMEs and help grow the economy.”
BNB-Bank, a mid-sized bank with branches
in the capital, Minsk, and regional cities, is one of just a few private
financial institutions in Belarus focused on SMEs, which often struggle
to obtain financing.
“IFC is helping banks improve their sustainability
and mitigate risks, including currency risk,” said Tomasz Telma, IFC’s
Director for Europe and Central Asia. “This agreement with BNB-Bank, our
long-term partner in the country, reflects IFC's commitment to strengthen
Belarus' financial sector and expand access to finance for local entrepreneurs
through capital market innovations.”
Over the past several years, IFC has supported
BNB-Bank with a range of financial products, including trade finance, debt
financing, and equity investments.
IFC is a leading international investor in
Belarus’ private sector and has so far provided about $300 million in
long-term financing across several sectors. IFC has also provided about
$430 million to Belarussian banks via its Global Trade Finance Program.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY16, we delivered a record $19
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org